SUPPLEMENTARY INFORMATION: On April 30, 2007, the United States--
European Union Air Transport Agreement was signed, providing community
airlines (airlines of the European Community and its Member States) the
right to

[[Page 42096]]

transport passengers and cargo on U.S. Government procured
transportation for both scheduled and charter flights, subject to
certain conditions. Specifically, community airlines may transport
passengers and cargo on scheduled and charter flights for which a U.S.
Government civilian department, agency, or instrumentality:
(1) Obtains the transportation for itself or in carrying out an
arrangement under which payment is made by the U.S. Government or
payment is made from amounts provided for the use of the U.S.
Government, or
(2) Provides the transportation to or for a foreign country or
international or other organization without reimbursement, and the
transportation is:
(a) between any point in the United States and any point in a
Member State, except--with respect to passengers only--between points
for which there is a city-pair contract fare in effect, or
(b) between any two points outside the United States.
This provision described above does not apply to transportation
funded by the Secretary of Defense or the Secretary of a military
department.
The Federal Travel Regulation (FTR), section 301-10.135 (b) (41 CFR
301-10.135(b)) includes an exception to the use of U.S. flag air
carrier service when the transportation is provided under a bilateral
or multilateral air transportation agreement to which the U.S.
Government and the government of a foreign country are parties, and
which the Department of Transportation has determined meets the
requirements of the Fly America Act. As the U.S.-EU Open Skies
agreement is such an air transportation agreement, the General Services
Administration (GSA) intends to issue regulations addressing the
content of the provision on U.S. Government procured transportation
included in the agreement to ensure that all are aware of the change
made by the agreement. Regulations addressing air passenger
transportation will be included in the FTR.
GSA is in the process of drafting a proposed rule with request for
comments on proposed revisions to the FTR that will be published in the
Federal Register.